2. Fiscal Fourth Quarter 2017 Financial Results2
This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among
other things, our future operations, prospects, developments, strategies, business growth and financial outlook for fiscal full-year 2018. Forward-looking
statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," “outlook”, "could," "should," "will,"
"continue" and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as
of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are
beyond our control and are difficult to predict.
Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not
limited to:
• increased oversight and regulation of the global payments industry and our business;
• impact of government-imposed restrictions on payment systems;
• outcome of tax, litigation and governmental investigation matters;
• increasingly intense competition in the payments industry, including competition for our clients and merchants;
• proliferation and continuous evolution of new technologies and business models;
• our ability to maintain relationships with our clients, merchants and other third parties;
• brand or reputational damage;
• management changes;
• impact of global economic, political, market and social events or conditions;
• exposure to loss or illiquidity due to settlement guarantees;
• uncertainty surrounding the impact of the United Kingdom’s withdrawal from the European Union;
• cyber security attacks, breaches or failure of our networks;
• failure to maintain interoperability with Visa Europe’s systems;
• our ability to successfully integrate and manage our acquisitions and other strategic investments; and
• other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year
ended September 30, 2016, and our subsequent reports on Forms 10-Q and 8-K.
Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.
Forward-Looking Statements
3. Fiscal Fourth Quarter 2017 Financial Results3
Strong Fiscal Fourth Quarter Results
Returned approximately $2.1 billion of capital to shareholders
in the form of share repurchases and dividends
GAAP net income of $2.1 billion or $0.90 per share
Net operating revenues of $4.9 billion, an increase of 14%,
driven by continued growth in payments volume, cross-
border volume and processed transactions
4. Fiscal Fourth Quarter 2017 Financial Results4
Quarter ended June – Excludes Europe Co-badge Payments Volume*
Payments Volume
US$ in billions, nominal, except percentages
INTL
600
INTL
1,025
INTL
476
INTL
607
INTL 123
INTL
417
U.S.
749
U.S.
840
U.S.
375
U.S.
446
U.S.
374
U.S.
393
1,349
1,864
852
1,053
497
811
INTL = International
Total Visa Inc. Credit Debit
YOY Change
(constant) 39% 25% 62%
YOY Change
(nominal)
24% 63%38%
Note: 2016 data does not include Visa Europe payments volume. On occasion, previously submitted volume information may be updated to reflect revised client submissions or other
adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes and totals are calculated based on unrounded numbers.
Constant dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.
2016
2017
* As a result of EU regulation changes, effective with the quarter ended December 31, 2016, Europe co-badge volume is no longer included in reported volume.
5. Fiscal Fourth Quarter 2017 Financial Results5
Quarter ended September – Excludes Europe Co-badge Payments Volume*
Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the earnings
release to provide more recent operating data. Service revenues continue to be recognized based on payments volume in the prior quarter.
Payments Volume
US$ in billions, nominal, except percentages
YOY Change
(constant) 10% 9% 11%
YOY Change
(nominal)
8% 13%10%
Note: On occasion, reported payments volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures
may not recalculate exactly due to rounding. Percentage changes and totals are calculated based on unrounded numbers. Constant dollar growth rates exclude the impact of foreign
currency fluctuations against the U.S. dollar in measuring performance.
INTL
420
INTL 09
U.S.
575
U.S.
631
U.S.
277
U.S.
313
INTL
983
INTL
1,093 INTL
601
INTL
646 INTL 382
INTL
447
U.S.
768
U.S.
836
U.S.
409
U.S.
449
U.S.
359
U.S.
388
1,751
1,930
1,010 1,095
741 835
INTL = International
Total Visa Inc. Credit Debit
2016
2017
* As a result of EU regulation changes, effective with the quarter ended December 31, 2016, Europe co-badge volume is no longer included in reported volume.
For comparative purposes, 2016 data has been adjusted to exclude co-badge payments volume.
6. Fiscal Fourth Quarter 2017 Financial Results6
Quarter ended September – Excludes Europe Co-badge from Total Transactions*
Transactions
in millions, except percentages
Note: Total transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. On occasion, previously submitted transaction information
may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage
changes and totals are calculated based on unrounded numbers. Processed transactions represent transactions involving Visa, Visa Electron, Interlink, V PAY and PLUS cards processed
on Visa’s networks.
Credit
38%
YOY Change 10% 13%
Debit
62%
Credit
38%
65%
Debit
65%
Debit
35%
Credit
35%
Credit
39,183
43,100
25,921
29,180
Processed TransactionsTotal Transactions
2016
2017
* As a result of EU regulation changes, effective with the quarter ended December 31, 2016, Europe co-badge transactions are no longer included in total transactions.
For comparative purposes, 2016 data has been adjusted to exclude co-badge transactions within the total transactions.
7. Fiscal Fourth Quarter 2017 Financial Results7
Quarter ended June
Total Cards
in millions, except percentages
2,505
891
1,614
3,188
1,069
2,118
Visa Inc. Credit Debit
Note: 2016 data does not include Visa Europe cards. The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized
if data is unavailable. On occasion, previously submitted card information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not
material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
YOY Change 20% 31%27%
2016
2017
8. Fiscal Fourth Quarter 2017 Financial Results8
5,254
(993)
4,261
6,201
(1,346)
4,855
Gross
Revenues
Client
Incentives
Net Operating
Revenues
Fiscal 2016
Fiscal 2017
Revenue – Q4 2017
US$ in millions, except percentages
YOY
Change 36% 14%18%
Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
19%
22%
Client Incentives as a
% of Gross Revenue
3ppt
9. Fiscal Fourth Quarter 2017 Financial Results9
Revenue Detail – Q4 2017
US$ in millions, except percentages
1,768 1,779
1,489
218
2,116 2,067
1,792
226
Service Revenues Data Processing
Revenues
International
Transaction Revenues
Other Revenues
Fiscal 2016
Fiscal 2017
YOY
Change 16% 20%20% 3%
Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
10. Fiscal Fourth Quarter 2017 Financial Results10
Operating Margin – Q4 2017
US$ in millions, except percentages
1,636
2,625
1,526
2,735
1,643
3,212
Reported GAAP Fiscal 2016 Adjusted non-GAAP Fiscal 2016 Reported GAAP Fiscal 2017
62% 64% 66%
Note: Adjusted non-GAAP financial measures exclude the impact of certain significant items related to the acquisition of Visa Europe in fourth quarter of fiscal 2016. There were no
comparable adjustments for fourth quarter of fiscal 2017. Refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented.
Operating margin is calculated as operating income divided by net operating revenues. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based
on unrounded numbers.
8% 17%N/A 2 ppt
14% 22%0% 5 ppt
YOY Change
(Reported GAAP)
YOY Change
(Adjusted non-GAAP)
4,261
4,855
Net Operating
Revenue
Operating
Income
Operating
Expenses
Operating
Margin
N/A – Not applicable, as there were no non-GAAP adjustments
11. Fiscal Fourth Quarter 2017 Financial Results11
Operating Expenses – Q4 2017
US$ in millions, except percentages
690
580
655
Reported GAAP Fiscal 2016 Adjusted non-GAAP Fiscal 2016 Reported GAAP Fiscal 2017
Personnel
Note: Adjusted non-GAAP financial measures exclude the impact of certain significant items related to the acquisition of Visa Europe in fourth quarter of fiscal 2016. There were no
comparable adjustments for fourth quarter of fiscal 2017. Refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented.
Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
4%(4%) 27% 4% 5%
YOY Change
(Reported GAAP)
(5%) NM
YOY Change
(Adjusted non-GAAP)
13% N/A N/A N/A N/AN/A N/A
300
161
113
141
230
1
290
167
144 147
238
2
Marketing Network &
Processing
Professional Fees Depreciation &
Amortization
General &
Administrative
Litigation Provision
NM - Not meaningful
N/A – Not applicable, as there were no non-GAAP adjustments
12. Fiscal Fourth Quarter 2017 Financial Results12
Other Financial Results and Highlights
• Cash, cash equivalents and available-for-sale investment securities of $15.3
billion at the end of the fiscal fourth quarter
• Adjusted free cash flow of $2.6 billion for the fiscal fourth quarter
• Capital expenditures of $195 million during the fiscal fourth quarter
See appendix for reconciliation of adjusted free cash flow to the closest comparable U.S. GAAP financial measure.
13. Fiscal Fourth Quarter 2017 Financial Results13
Financial Outlook for Fiscal Full-Year 2018
Annual net revenue
growth
High single digits on a nominal dollar basis, with
approximately 0.5 to 1 ppt of positive foreign currency impact
Client incentives as a
percentage of gross
revenues
21.5% to 22.5% range
Annual operating
expense growth
Mid-single digits adjusted for special items in fiscal 2017 (see
note below)
Annual operating
margin
High 60s
Effective tax rate About 29%
Annual diluted class A
common stock
earnings per share
growth
Mid-40’s on a GAAP nominal dollar basis and high end of
mid-teens on an adjusted, non-GAAP nominal dollar basis
(see note below), both including approximately 1 to 1.5 ppts
of positive foreign currency impact
Note: The financial outlook for fiscal full-year 2018 includes Visa Europe integration expenses of approximately $60 million for the full-year. Annual operating expense growth is derived
from adjusted full-year 2017 operating expenses of $6.0 billion. Annual adjusted diluted class A common stock earnings per share growth is derived from adjusted full-year 2017 earnings
per share results of $3.48. Refer to the accompanying financial tables for further details and a reconciliation of the adjusted fiscal full-year 2017 results.
15. Fiscal Fourth Quarter 2017 Financial Results15
Calculation of Adjusted Free Cash Flow
US$ in millions
A-1
Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first
re-invest in the business and then return excess cash to shareholders through stock buybacks and cash dividends. During the three months
ended September 30, 2017, the Company generated adjusted free cash flow of $2.6 billion, and returned $2.1 billion to investors through
stock buybacks of $1.7 billion, and dividends paid of $390 million. During the twelve months ended September 30, 2017, the Company
generated adjusted free cash flow of $8.5 billion, and returned $8.5 billion to investors through stock buybacks of $6.9 billion, and
dividends paid of $1.6 billion. The Company defines adjusted free cash flow as cash provided by operating activities adjusted to reflect
capital investments made in the business. Adjusted free cash flow is a non-GAAP performance measure and should not be relied upon as a
substitute for measures calculated in accordance with U.S. GAAP. The following table reconciles as-reported net cash provided by
operating activities to non-GAAP adjusted free cash flow.
